Notes of Meeting..Part 2
Iacobucci continued..
increase in users 4 million/15 million end users-99
this year 9 months later significant increase..50%
6 million/24 million end users
ASP...new awareness. Customers do want it. Formed consortium..over 300 members..future looks good for ASp..
info access ..Ctxs was instrumental in this movement..be believe this will be very beneficial for CTXS. Side effects info will not be controlled by the experts but info will become ubiquitous like television/telephone/radio today. It will spur an evolution to how software is distributed from shrink wrap thru distribution channels to a new form of fee based subscription services thru subscription services..geographic boundaries as regards Tech will dissolve. i.e. Silicon Valley, Boston, Austin, to anywhere in the world.
These changes will create opportunities for companies and CTXS is well positioned to take advantage..How?
1. Most ISP are still Windows and will be for some time, we can leverage this.
2.Building infrastructure...over 130 manufacturers on global basis building devices (over 200) to connect to our server farms..for Windows aps.
3. Expand server Tech to include unix aps..
4. Online distribution model the new way of distributing info.
5. Take those 24 million users and hook them up with the SP's.
Once all this is built will connect to broadband telecoms etc.
ASP will grow rapidly... winner in this space will be the co. that can deal with existing ap's as well as new ones and we believe CTXS is best positioned to be a winner in that environment. End..
CEO: Up to now focused on a single product and PUSH..pushing the products through trail/sales etc..
We are now moving to multiple products through multiple channels.....PULL
Investing in
1. Serving (large) Enterprise customers
2. Broadening products..
3. ASP's being an earlier leader
4. Business infrastructure..people
Want deeper penetration in large global co's
Doing business with 100% with Fortune 100, over 80% of Fortune 500 and about 40% of the Financial Times European 500.
Driving deeper with more products, unix etc, web ap's.
Focus on ASP's has potential of enormous market place for us.
Re-centralization of IT. Get to leverage all the hardware they have. Seeing using the browser WWW as way to centralize.
Call this Portalization..can just type in your name in the morning and get everything that you need. Get all corp info/internal/external web based info and business intelligence you need. It is knows, who you are, what your job is and what info you need to do it.
Well positioned as market leader in a highly profitable field and we are investing in it. (end)
(next was Q&A will only note ones that I think are relevant)
Q&A
Volitility of stock last few months and Msft?
basic answer was Techs got ahead of themselves and have all taken a correction, CTXS is in for the long term. CTXS has as much experience as anyone working with Msft and whatever way it goes(split into two) CTXS will do fine. Ed adds; we don't have a crystal ball but we help Msft we are good for them, when we sell our products they sell an OS, they sell license and ap's Word, Excel etc.
Q. Graph-on competition?
It is a competitor..a small company..we take all competitors and potential competitors very seriously..but it is very difficult...it is not only about products but the other things.. like relationships..channels etc.
My Q. Re: DSO's and Vertigo
CFO: DSO's went from 46 to 59. more of our rev came in the 3Q.
3 reasons - 3 new products were introduced.
Enterprize sales were higher than normal, faster growing, which we wanted, the nature of these E. sales is that most transactions are completed near the back end of the Q.
Sales were slow in the first part of the Q and picked up in the latter part of the Q.
Some people misunderstood and thought that the DSO's were an indication that our accts receivable were in not being collected or were in trouble. That is not true. They are in excellent shape. If I had to do it over a gain, when the analyst called I'd have spent a lot more time explaining, I assumed a knowledge on the part of the analyst that wasn't there. Had nothing to do with the quality of receivables.
Vertigo;from Acquisition Viewsoft.is about allowing customers to build Web based ap's from scratch that has all the richness and interactivity that a Windows ap has but are simple to solve and get out on the desktop as an HTML Web page. In 2nd bata testing, launching Q3 at the Las Vegas Microsoft professional developers conference July. A product that ap's will be built a round it so will impact our rev in 2001.
{Ed on this later but will put it here} Q.Re: Java2/HTML?
Heard years ago Java was going to be the answer but has same problems windows has, fat,slow. We are addressing this area with Vertigo-addressing the inefficiencies in the market. It is scalable and will run Java on the server. (He talked real fast here and I didn't get all he said but I felt he had it handled). I will reply the tapes on the week end and add anything relevant, not included here.
Q. Takeover target-poison pill?
Is not aware of anything.
Do not have poison pill but all software companies are based on people and it is unheard of for a hostile takeover of a software co' because of this.
Q Re: NT Server.
Ed: Windows 2000 server great opportunity for CTXS.
Yes it has some features that do the same things that we do.
Q? Threat? No our problem has always been explaining "What we do?"{Feel better Mike Buckley) this way they get experience and we get more sockets to plug into. remember we are the ones that developed the products .
That is about it. I left feeling lucky to be a shareholder and confident in the team.
Ray
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